The Beginning Capital Balance Shown on a Statement of Owner's

question 12

Multiple Choice

The beginning capital balance shown on a statement of owner's equity is $100,000.Net income for the period is $50,000.The owner withdrew $25,000 cash from the business and made no additional investments during the period.The owner's capital balance at the end of the period is

• A) $175,000.
• B) $150,000.
• C) $125,000.
• D) $100,000.

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Definitions:

Internal Growth Rate

The maximum growth rate a firm can achieve without external financing, based on reinvestment of its own earnings.

Financial Planning

The process of estimating the capital required and determining its competition. It is the process of framing financial policies in relation to procurement, investment and administration of funds of an enterprise.

Financing

The process of supplying capital for company operations, acquisitions, or investments.

Desired Level of Growth

The desired level of growth is a target set by a business or organization for the expansion of its operations, sales, or market share over a specific period.